Financing Energy Efficiency, Part 2 : Credit Lines
Despite offering huge economic returns, implementing energy efficiency measures encounters widespread and systemic barriers. A variety of market failures are keeping project developers from accessing commercial financing for energy efficiency inves...
| Main Authors: | , , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/736461536264652800/Financing-Energy-Efficiency-Part-2-Credit-Lines http://hdl.handle.net/10986/30386 |
| Summary: | Despite offering huge economic returns,
implementing energy efficiency measures encounters
widespread and systemic barriers. A variety of market
failures are keeping project developers from accessing
commercial financing for energy efficiency investments.
Energy efficiency credit lines are created when
international donors loan funds to financial institutions,
which then lend to project developers. Credit lines offer a
solution where domestic banks are strong but not lending to
energy efficiency projects. These lines of credit offer
access to finance in the near term, while paving the way for
commercial financing in the medium to long term,
particularly in the industrial sector. The World Bank's
portfolio reveals that under the right conditions, credit
lines can achieve dramatic results. |
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